UBS is expected to announce an increase in quarterly net profit of around 25 percent (year-on-year), according to SonntagsZeitung – citing an anonymous source.
The Swiss banking giant, co-headquartered in Zürich and Basel, will reportedly post quarterly net profit of 1.5 billion francs on Tuesday.
SonntagsZeitung said on Sunday that the results will beat analysts’ expectations.
Net profit for the first half of the fiscal year is expected to be around 3.5 billion Swiss francs ($3.64 billion) – representing a 50 percent increase compared to the first half of 2014.
The anonymous source told SonntagsZeitung that UBS earnings would have been even higher if the company did not have write-offs of about 200 million francs.
The newspaper said that over half of its quarterly profit was brought in by its Swiss subsidiary, with 700 million francs from corporate banking and 150 million from asset management.
UBS rival Credit Suisse reported impressive Q2 results last week
Last week one of UBS’s main competitors, Credit Suisse, posted better than expected second-quarter profit that beat analyst estimates. The second largest Swiss bank reported profit of 1.05 billion francs ($1.15 billion) after a loss of 700 million francs a year earlier.
UBS set to expand in China
Earlier this month UBS said that it sees huge potential for its private banking business in China. Private banking refers to providing a tailored service for wealthy individuals.
Kathryn Shih, the company’s head of wealth management in the Asia-Pacific region, said that the bank is encouraged by Chinese government measures to open up the financial industry.
“We need to get a foothold there first,” she told Bloomberg. “It’s really to establish our presence, establish our brand in China.”
